Simple Analytics of the Government Expenditure Multiplier

By Michael Woodford. 2010

1,022 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/3c2b5f351401c52e1d1798105bbaa113c5f58d2a

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Citations in the corpus

Log-linear approximation versus an exact solution at the ZLB in the New Keynesian model (2016, methodology): “One numerical experiment matches a recession of the order of the Great Recession (GR) (an output gap of -10 percent and a two percent fall in inflation). The other experiment matches a large contraction of the order of the Great Depression (GD) (30 percent output gap and a 10 percent drop in inflati”
A Behavioral New Keynesian Model (2020, methodology): “(106)See Woodford (2011) for an analysis with rational agents.”
State-dependent effects of fiscal policy (2014, neutral): “The findings of a positive response of consumption in both regimes is consistent with the linear results obtained by Blanchard and Perotti (2002), Pappa (2009), and Woodford (2011).”
Estimating Fiscal Multipliers: News From A Non‐linear World (2015, neutral): “This second measure is designed to account for the persistence of scal shocks (Woodford (2011)).”
Sovereign Risk and Belief-Driven Fluctuations in the Euro Area (2013, positive): “In this section, as in Woodford (2011) and Christiano et al. (2011), we assume that parameters are such that the equilibrium is determinate, and we let government spending deviate from its steady-state level as long as policy rates remain constant.”
On Measuring the Effects of Fiscal Policy in Recessions (2011, neutral): “King (1984), S. Rao Aiyagari, Lawrence J. Christiano, and Martin Eichenbaum (1992), Ramey and Matthew D.”
Estimating Local Fiscal Multipliers (2016, background): “Future work could focus on the interaction of federal spending with local business cycles, since recent papers have shown that the income multiplier might be larger during recessions (Auerbach and Gorodnichenko 2010, Christiano et al. 2009, Woodford 2010).”
Clearing Up the Fiscal Multiplier Morass (2011, background): “While simple DSGE models that permit analytical calculations of the multiplier are important for building economic intuition (e.g., Woodford (2011), Uhlig (2010)), they cannot be taken to data in 3We restrict the open-economy model in the text so that the economy does not have access to…”
Nonlinear Adventures at the Zero Lower Bound (2012, neutral): “…households, and with a Taylor rule that responds to the output gap.14 This value is also consistent with the analytic insights in Woodford (2011), who derives multipliers less than 1 when the economy is outside the ZLB and has parameter values commonly found 14In the…”
Did the Stimulus Stimulate? Real Time Estimates of the Effects of the American Recovery and Reinvestment Act (2011, neutral): “Woodford (2011) suggests that the multipliers will be higher when interest rates are at the lower bound.”
The Fiscal Multiplier (2019, neutral): “The multiplier here is smaller than one whereas it is equal to one in Woodford (2011) since the real interest rate is constant in the small-open economy experiment considered in Woodford (2011) but endogenous and time-varying here.”
Fiscal Multipliers and the State of the Economy (2012, neutral): “However, more recently the zero lower bound on interest rates has been binding, and some studies have argued that fiscal multipliers became much larger than unity once this happened (Woodford, 2010; and Christiano, Eichenbaum, and Rebelo, 2011).”